Robert Gendron, the Corporate Vice President of Marketing at Vicor Corp (NASDAQ:VICR), recently executed a series of stock transactions involving the company's common stock. On November 7, 2024, Gendron exercised options to acquire 794 shares at a price of $41.61 per share, totaling approximately $33,038. Subsequently, he sold the same number of shares at a price of $57.575 per share, amounting to a total of $45,714.
Following these transactions, Gendron's direct ownership of Vicor's common stock stands at 5,374 shares. The options exercised were part of the company's Amended and Restated 2000 Stock Option and Incentive Plan, granted on May 2, 2023, and are set to vest over a five-year period.
In other recent news, Vicor Corporation revealed mixed results for its third quarter. The company's Q3 revenue saw an increase of 8.5% sequentially, reaching $93.2 million, but showed a decrease of 13.6% from the same period in 2023. The net income for the quarter was reported at $11.6 million, with diluted earnings per share of $0.26. Vicor's gross profit margin was 49.1%, slightly less than the previous quarter.
Other notable developments include a delay in the launch of Vicor's Gen 5 chipset due to a PCB issue, with initial shipments expected to commence shortly. The company also highlighted its ongoing legal efforts to protect its intellectual property, with an initial determination already issued by an ITC (NS:ITC) judge.
In terms of future expectations, Vicor is targeting strategic opportunities in the AI and automotive sectors, aiming for a revenue goal of $1 billion with a focus on achieving 65% gross margins. These are the latest developments in the company's journey, with the anticipation of significant revenue from their Gen 5 technology in the future.
InvestingPro Insights
Vicor Corp's recent stock transactions by Corporate VP Robert Gendron align with the company's current market position and financial performance. According to InvestingPro data, Vicor's market capitalization stands at $2.64 billion, with a price-to-earnings ratio of 122.23 on a last twelve months basis as of Q3 2024. This high P/E ratio suggests investors are pricing in significant growth expectations for the company.
InvestingPro Tips highlight that Vicor holds more cash than debt on its balance sheet, indicating a strong financial position. This aligns with the company's ability to offer stock options to executives like Gendron. Additionally, Vicor boasts impressive gross profit margins, which stood at 50.9% for the last twelve months as of Q3 2024, demonstrating the company's pricing power and operational efficiency.
However, it's worth noting that Vicor's revenue growth has been negative, with a -14.92% decline in the last twelve months. Despite this, the stock has shown significant momentum, with a 50.85% return over the past year and a 73.47% return over the last six months. This strong performance is reflected in the stock trading near its 52-week high, with the price at 98.32% of its highest point.
For investors seeking a more comprehensive analysis, InvestingPro offers 21 additional tips for Vicor Corp, providing a deeper understanding of the company's financial health and market position.
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